A decision to cut road funding to local councils is expected to affect road standards in the Bay of Plenty, particularly in the Opotiki District.

Road maintenance in the Opotiki District has traditionally been paid for by local rates and central government funding in equal proportions.

In May, the New Zealand Transport Agency announced it was reducing its share of road maintenance funding to the Opotiki District and others around the country from July 1, 2012.

Opotiki District Council Mayor John Forbes says his Council faced the dilemma of either increasing rates to cover the shortfall or decreasing the level of road maintenance it provides.

'Following public comment during our long term plan process, Council decided to increase its share of the cost, meaning local ratepayers will pay more for their roads, but the increase in rates is not enough though to cover that shortfall.”

This means people need to accept there will be a decrease in the standard of road maintenance, he says.

'There was really no option to increase funding to fully cover the shortfall as it would have put us in breach of our rates rise cap being promoted by government.”

John says this is just one of a range of pressures central government is placing on local authorities at the moment.

'I intend to do the same and keep the pressure on in Wellington. Roads are the life blood of the rural economy and any diminishment of that status has the potential to be very serious, not just for local communities but for the wellbeing of the entire economy.”